• No results found

Consumer responses on CSR : the influence of factors that play a role in the purchase decisions for CSR products in the travel industry

N/A
N/A
Protected

Academic year: 2021

Share "Consumer responses on CSR : the influence of factors that play a role in the purchase decisions for CSR products in the travel industry"

Copied!
57
0
0

Bezig met laden.... (Bekijk nu de volledige tekst)

Hele tekst

(1)

CONSUMER RESPONSES ON CSR

The influence of factors that play a role in the purchase decisions for CSR products in the travel industry

Esther Weeber (10475834)

University of Amsterdam Faculty of Economics and Business Executive Programme Management Studies Specialization: Marketing Academic year: 2014-2015 Supervisor: dhr. drs. F. Slisser Version: Final Submission date: January 31, 2015

(2)

1 Abstract ... 1

2 Introduction ... 2

3 Literature review ... 3

3.1 Definition of CSR ... 3

3.2 CSR in the travel industry ... 5

3.3 Consumer purchase behaviour to CSR ... 8

4 Research Design ... 21

4.1 Overall research design ... 21

4.2 Sample ... 21

4.3 Measurement of variables ... 23

4.4 Procedure ... 26

5 Results ... 28

5.1 Correlation analysis ... 28

5.2 The hierarchically-structured process of the variables ... 31

6 Discussion ... 33

6.1 Theoretical and practical implications ... 33

6.2 Limitations ... 36

7 Conclusion ... 37

Appendix 1: Questionnaire ... 39

(3)

Figure 1: Overview of dimensions of CSR definitions (Rahman, 2011) ... 4

Figure 2: Towards a future research agenda for studies of CSR in tourism management (Tim Coles et al., 2013) ... 7

Figure 3: Conceptual Framework (Sen, Bhattacharya 2001) ... 10

Figure 4: CSR Framework (Bhattacharya, Smith et al. 2004)... 12

Figure 5: Model of impeding factors (Bray et al., 2011) ... 13

Figure 6: Research Model 1 ... 19

Figure 7: Research Model 2 ... 20

Figure 8: Response rate ANWB tour operators ... 22

Figure 9: Relation dependent and independent variable ... 28

Figure 10: Relation all variables and dependent variable ... 29

Figure 11: How much more people willing to pay for a CSR product in travel industry in % ... 30

(4)

1

1

Abstract

Corporate Social Responsibility (CSR) plays a minor role in consumption decisions. This quantitative study identifies and quantifies the factors that play a role in the purchase

decisions for CSR products in the travel industry. Attitude towards CSR products is the most significant factor, followed by price. Price is an interesting factor because in the travel

industry price plays an important role for purchase decisions. We found a relation between the factors availability of information, reconciliation with CSR initiatives, and credibility of the CSR initiative and the purchase decisions for CSR products in the travel industry. While these relationships were statistically significant, we also found that small impact of CSR factors on purchase decisions in the travel industry is relatively small. This study has contributed to the literature by assessing the mutual importance of the factors that play a role in the purchase decisions for CSR products. We were able to increase the understanding of consumer decision making of CSR products in the travel industry.

(5)

2

2

Introduction

Research into Corporate Social Responsibility (CSR) programs and the consumer’s reaction has recently seen an increasing interest. There is a considerable gap between consumers’ apparent interest in CSR and the limited role of CSR in purchase behaviour and consumption decisions (Pomering, Dolnicar 2009, Bray, Johns et al. 2011, Eckhardt, Belk et al. 2010). The impact of CSR initiatives on ‘internal’ outcomes (e.g., awareness) is significantly greater and more easily assessable than its impact on ‘external’ or visible outcomes (e.g., purchase behaviour) (Bhattacharya, Smith et al. 2004). When being asked, consumers declare their willingness and motivation to take CSR considerations into account, however, upon actual consumption decisions, only a few act on that willingness (Eckhardt, Belk et al. 2010). The travel industry shows an increasing interest in sustainability and CSR as this industry depends heavily on environmental and cultural resources, which makes responsible business practices essential to achieve sustainable tourism. (Sheldon, Park 2010).

The aims of the present study are to first identify the factors that play a role in consumption decisions of CSR products in the travel and second to measure the influence of identified factors using a quantitative method. The starting point is a qualitative study from Öberseder, Schlegelmilch & Gruber (2011). Their findings show that the evaluation of CSR initiatives is a complex and hierarchically-structured process in which consumers distinguish between core, central, and peripheral factors

The presented research will contribute to a better understanding of consumers’ ethical decision making by revealing the important factors that play a role in the purchase decision of CSR products. Such improved understanding of ethical consumption can assist business enterprises in determining the marketing mix (price, promotion, place, and product) for CSR products.

This paper has been organized as follows. First, the theoretical domain of information search is explored, along with the theory of Corporate Social Responsibility, with a focus on the travel industry context and consumer purchase behaviour. The hypotheses and research propositions concerning consumer purchase behaviour of CSR products are then presented. The study's data collection, analysis, and results are then discussed, along with implications for academics and marketers.

(6)

3

3

Literature review

3.1 Definition of CSR

Although Corporate Social Responsibility (CSR) has been studied during several decades, a generally accepted definition has not yet been formulated (Crane, Matten et al. 2008). The European Commission defines Corporate Social Responsibility (CSR) as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (European Commission, 2001).

Since the 1950s, CSR as topic has become a widely discussed among academics and business practitioners (Carroll 1999). An initial definition of CSR was the “obligation of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society” (Bowen, Johnson 1953). Definitions became more specific in the 1970s; while in 1980s saw the first attempts to measure and to conduct research on CSR. In the 1990s a more comprehensive theory was developed and scholars have since revised and adapted existing definitions of CSR or have even created new definitions may come into the literature (Carroll 1999).

Another approach to define CSR is by using Kotler's (1991) societal marketing concept, which focuses on conducting business by maintaining or improving both the customer's and society's well-being. Mohr and Webb (2001) thus define CSR as “a company's commitment to minimizing or eliminating any harmful effects and maximizing its long-run beneficial impact on society.” They define socially responsible consumer behaviour as “a person basing his or her acquisition, usage, and disposition of products on a desire to minimize or eliminate any harmful effects and maximize the long-run beneficial impact on society”.

Alexander Dahlsrud (2008) examined the differences and similarities of the available definitions of CSR. He identified five dimensions on which he categorized the different definitions. These five dimensions are the environmental dimension, the social dimension, the economic dimension, the stakeholder dimension and the voluntariness dimension. Dahlsrud‘s showed that the existing definitions are to a large degree congruent and the challenge is more to understand how CSR is socially constructed in a specific context and how to take CSR into account when actual business strategies are developed (Dahlsrud 2008).

Rahman (2011) added five more dimensions: improving the quality of life, ethical business practice, law abiding, human rights, and transparency and accountability. He

(7)

4

classified these dimensions over different periods, starting from the 1950s up to the 21st century and showed that the CSR definition is not static, but has developed over time.

Figure 1: Overview of dimensions of CSR definitions (Rahman, 2011)

Ethical consumerism

Ethical consumerism is practiced through positive buying in that ethical products are favoured. The ethical consumer ideal implies that individual consumers can have a significant role in promoting ethical corporate practices through their daily purchasing decisions, (Uusitalo, Oksanen 2004). Ethical consumerism or Consumer Social Responsibility (Devinney et al. 2006) is different from Corporate Social Responsibility in its point of view: the consumer instead of a company.

In the past decades, the concept of ethical consumerism has evolved from a focus on environmental issues to a concept that more broadly incorporates matters of conscience (Carrington, Neville et al. 2010). Carrigan et al. (2001) confirms this evolution and Carrigan and Attila observe that these matters of conscience include such varied issues as animal welfare, labour standards, human rights, health-related issues, and environmental issues (Carrigan, Attalla 2001). In its broadest form, ethical consumerism can be defined as “the conscious and deliberate choice to make certain consumption choices due to personal and moral beliefs” (Crane, Matten et al. 2008). It includes two basic components: (1) an ‘ethical’ component relating to the underlying importance of the non-traditional and social components

Period Dimension Explanation

1950s Obligation to the society Corporate managers and board directors started feeling that they exist as society exist and they have some obligation towards the society.

1960s Relationship between corporation and society Moral issues in business were raised on a record level. 1970s Stakeholders’ involvement Match public expectation and utilization of CSR for long

term benefits of the society to improve the quality of life, economic responsibility, legal responsibility and discretionary responsibility.

1980s Voluntariness Identifying the relation between CSR and profitability. CSR

activities increase reputations of the corporations, which increase the confidence of the consumers on the products and services of those companies. As a result, the profitability increases too.

1990s Stakeholders’ involvement as obligation to the society

The business case for CSR has been gaining solid foundation, surrounding the idea of People, Planet and Profit, which means that what is good for the environment and what is good for the society is also good for the financial performance of the business.

21st century Integration of social and environmental concern Improving the quality of life of the citizens; human rights; labour rights; protection of environment; fight against corruption; transparency and accountability.

(8)

5

of a company’s products and business processes; and (2) a ‘consumerism’ component that implies that consumer segments’ preferences and desires are partially responsible for the increasing influence of ethical or social factors.

Views of CSR

Generally, there are three views of CSR money (Etilé, Teyssier 2012):

1. the ‘win-win proposition’, which assumes CSR increases profits created by a refocus of managers on long-term profit rather than on short-time profit;

2. the ‘delegated philanthropy’, where economic agents use the firm as a channel for their donation deeds and then for their social responsibility;

3. the ‘insider-initiated corporate philanthropy’, where CSR decreases the a firm’s profit because CSR is the board’s decision to donate and sacrifice.

For this study we use ‘delegated philanthropy’ view because it is strongly business related and not in contradiction with the firm’s profit maximization. Taking into account how a multitude of CSR definitions have evolved over time, the study uses the following definition for this study: “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (European Commission, 2001). The chosen definition includes all the dimensions, mentioned in (Dahlsrud 2008, Rahman 2011) and it also absorbs the evolution of the definition of CSR.

3.2 CSR in the travel industry

The travel industry’s operations are often not very sustainable, either environmentally or economically. Generally, tourism development contributes to the depletion of natural resources, such as water or wood, causes multiple forms of pollution, and may have a deep physical impact (Wijk, Persoon 2006). In recent years, the importance of the travel industry’s CSR has substantially risen along with the environmental issues of degradation, climate change, and depletion of natural resources, human rights issues, and fair trade. The travel industry depends heavily on environmental and cultural resources, making responsible business practices essential to achieve sustainable tourism. In this industry there is a close reliance on sociocultural and environmental resources and its peaking interest in sustainability (Carey, Gountas and Gilbert, 1997). Increased stakeholder pressure requires tourism

(9)

6

businesses to respond to the demand for more sustainable behaviour in the industry (Garay, Font 2012). Various non-profit initiatives have emerged that address the need for sustainable tourism products that are environmentally friendly and contribute to solving severe poverty problems in the developing world. However, a clear market demand for more sustainable tourism products is, as yet, absent. Tourists tend to shop around for the lowest possible price and consumer loyalty is low in the tour operating industry (Wijk, Persoon 2006).

Adlwarth (2010) studied the consumer’s expectations regarding CSR with respect to both the expectations and the actual travel behaviour of German tourists. He showed that CSR is an important and serious aspect for the target group of CSR interested tourists. But first other aspects must fulfil the demands and expectations of the consumers, among others landscape, relaxation, recovery possibilities, culture and sights, weather, and safety. Only after these aspects have been fulfilled, compliance of social and ecological standards may be the decisive point to choose between otherwise equal offers. CSR is an important component to enthuse the social responsible consumer.

Coles, Fenclova and Dinan (2013) present a critical review of recent progress in research on CSR in the travel industry. They found that for the most part, tourism research on CSR has not drawn heavily on the latest theoretical, conceptual or methodological advances derived from extensive critical research in other sectors of economic activity. In general, there is a clear need for more basic empirical research. Two distinct epistemological trends emerge in recent research on tourism CSR. First, there has been a great reliance on empirical data from secondary sources, most often by executing using case-studies. A second and related trend is that there has been only limited engagement by tourism scholars with the mainstream research literature on CSR. Coles et al. (2013) established a future research agenda for studies of CSR in tourism management.

(10)

7

Figure 2: Towards a future research agenda for studies of CSR in tourism management (Tim Coles et al., 2013)

CSR and consumer decision making is one of the areas that is mainly absent from tourism research. In the travel industry, tour operators usually play the key role in CSR (Wijk, Persoon 2006). They can convince travellers of sustainable travel in their way of product presentation. The tour operators serve as the sales office of individual tourism service suppliers. They have the knowledge of market trends, provide front-end and promotion budgets, and accept a part of the risk of primary suppliers. The latter is essential for suppliers as tourism is a perishable product (Bastakis, Buhalis et al. 2004). Tour operators can lever their potential for the implementation of improvements upstream in the production chain because suppliers often have no alternative marketing or distribution channels (Bastakis, Buhalis et al. 2004, Buhalis 2000, Klemm, Martin-Quiros 1996, Carey, Gountas et al. 1997).

As intermediaries, tour operators can influence the consumer’s choice of destination and accommodation (Bastakis et al., 2004) as well as the perceived image and experience of the destination (Carey, Gountas et al. 1997). Because operators buy tourism products in bulk, they benefit from scale economies and can offer whole packages at prices that are usually lower than consumers could negotiate individually. Even though sustainable tourism depends on the strategies of both tour operators and destinations, it is the tour operator that can choose the suppliers who seriously try to recycle their ecological and social impact, while enhancing

Theme Established areas Emerging areas Areas for initiation

Implement action Awareness Drivers and barriers Leadership Understanding CSR Strategy CSR trajectories Adoption CSR Management Longitudinal studies (Best) Practices Cross-sectional surveys SMTEs

Codes of conduct MNCs Training

International advocacy/guidance Knowledge transfer Business case/Performance Financial performance Marketing CSR in value chain

Environmental reporting Employees (productivity/retention) Investor relations

CSR and consumer decision making Measurement - Reports Ouputs, metrics, measurement

Reporting practices International reporting schemes Outcomes Regulation and compliance

Social reporting Internal auditing Monitoring and evaluation Stakeholders Community destination studies External stakeholders Internal stakeholders

Social impacts of CSR Primary data sources Charity/Philantrophy

Comparative perspective

Communications - External CSR communication Internal CSR communications Secondary data resources Knowledge exchange/circulation

(11)

8

the economic multiplier effect (Wijk, Persoon 2006). Tour operators play an important role in CSR, which is why this study focuses on tour operators.

Some stakeholders are in favour of a certifiable CSR standard for the tourism industry. Certification programs have been suggested as a method for spelling out and operationalizing sustainable tourism or CSR (Font, Harris 2004, Buckley 2004). Certification goes hand in hand with the establishing a management system, which is the prerequisite for certification. In general terms a CSR-standard per se does not exist yet and offers in this direction are often self-made standards by special interest groups or consultants (Bode 2010). For the past few years, various certification programs have increasingly been used as a voluntary mechanism to show standards of performance beyond and are in line with the call for greater use of third-part verification, in third-particular certifications in the hospitality industry (de Grosbois 2012).

There are many types of certification in the travel industry. This research focuses on the Dutch travel industry and sustainable tourism is central for the branch organization ANVR (De Algemene Nederlandse Vereniging van Reisondernemingen). Their vision is as follows: “In 2025, sustainable tourism becomes commonplace and will have been integrated in the business of the ANVR members. The positive effects of the travel product are maximized and negative impacts minimized, which aims to a balance between People, Planet, and Profit in the Netherlands and at the destination” (Toekomstvisie op Toerisme 2025, 2013). Obtaining the Travelife certificate is required from the ANVR association for travel businesses in the context of the sustainable tourism policy (Duurzaam Toeristisch Ondernemen). The Travelife initiative is based on the central role of tour operators and travel agents in the tourism supply chain. Their position between suppliers and buyers enables them to influence consumer demand, procurement policies and the development of destinations. This allows them to contribute significantly to sustainable development and environmental and cultural protection in destinations.

3.3 Consumer purchase behaviour to CSR

One way for social responsibility to become financially relevant is when consumers use CSR as a purchasing criterion. It is important, therefore, for companies to know whether social responsibility is important to target consumers (Webb, Mohr and Harris, 2007). The attitude of consumers towards ethical issues with a connection to actual behaviour and understanding the consumers’ underlying rationales may be examined by means of surveys (Devinney et al., 2006). The type of CSR activity, consumers’ support of the initiative and their beliefs about

(12)

9

the trade-offs the company makes for the sake of CSR play a crucial role in consumers’ reactions to CSR activities (Batthacharya and Sen, 2001). Mohr and Webb (2001) conclude that only a small segment of consumers use CSR as purchase criterion. Most respondents in their research have positive attitudes towards companies who engage in CSR activities, but only a minority use a company CSR’s position as a purchase criterion. But is it also the studies about purchase criterion of CSR products what show results of a comparison between traditional survey questions of “intention to purchase” and estimates of individual’s willingness-to-pay for social attributes in products reveal that simple survey questions are too “noisy” to provide operationally meaningful information and overstate intentions to a considerable extent (Devinney, Auger et al. 2006). To summarize: previous research suggests that there is a gap between consumer intentions to consume ethically and their actual purchase behaviour. In this research we investigate the factors that influence the actual purchase behaviour of CSR products and this contributes to the understanding of this gap.

Sen and Bhattacharya (2001) suggest that CSR's influence on consumers' product purchase intentions is more complex than its straightforward positive effect on their company evaluations. They suggest that a company's CSR efforts can affect consumers' intentions to purchase its products both indirectly (Path 3) and directly (Path 4). The indirect path (Path 3) shows CSR's effect on consumers' product purchase intentions through the role of a company’s non-product dimensions, like CSR actions for purchase intentions. The direct path (Path 4) shows the CSR's direct influence on consumers' product evaluations and its dependence on three key moderators: the domain of the company's CSR actions (e.g., labour relations, employee working conditions), consumers' beliefs about the relationship between CSR and a company's ability to make quality products (e.g., CSR-CA beliefs), and their support of the CSR domain (e.g., CSR support) (Sen, Bhattacharya 2001). So the conclusion of this research is that consumers, who have positive attitude to CSR products and/or CSR company, will follow not only the indirect path to affect purchase intentions, but also the direct path:

(13)

10

Figure 3: Conceptual Framework (Sen, Bhattacharya 2001)

Vassilikopoulou, Siomkos et al. (2005) found that consumers have overall great expectations and a positive attitude concerning corporate social responsibility. They believe that corporate social responsibility is an important issue in business and are willing to reward socially responsible companies and punish socially irresponsible firms via their buying behaviour. Based on five attitude factors from the literature, an attempt was made to segment the consumers who constitute the socially responsible buyers (90% of the total sample; consumers who have positive or very positive attitude towards CSR). Three Clusters were identified: ambitious, fanatic and passive socially responsible consumers. So results suggest that consumers are concerned about CSR and they are willing to take actions to promote CSR (Vassilikopoulou, Siomkos et al. 2005). The identification of consumers who may be more sympathetic to ethical issues and hence more likely to choose ethical products is difficult. The results of different kind of studies show no agreement about demographic factors (Hines, Ames 2000, O’Fallon, Butterfield 2005, De Pelsmacker, Driesen et al. 2005). Consumers have heterogeneous social preferences and consumers with strong social preferences are more likely to purchase CSR products. Moreover, as socially responsible consumption is driven by social image concerns, in addition to altruism and self-image, developing on strong social norms of consumption may be sufficient to trigger the purchase of CSR products, even if individuals are not altruistic (Etilé, Teyssier 2012).

Green and Peloza (2011) found that CSR provides emotional, social and/or functional value to consumers. Emotional and social value appear to be somewhat “expendable” with consumers in a context of economic uncertainty, while CSR that provides functional value can become an even more salient criteria for decision making. Further, when consumers experience more than one form of value, often it was the functional value that was deemed to

(14)

11

be more important when making purchase decisions and appears to have a direct influence on the perceived social and emotional value.

Devinney, Auger et al. (2006) focus on another form of CSR, namely: Consumer Social Responsibility (CnSR). The difference is the emphasis of CnSR is on consumers instead of companies. CnSR can be defined as the conscious and deliberate choice to make certain consumption choices based on personal and moral beliefs. It includes two basic components: (1) an ‘ethical’ component relating to the underlying importance of the non-traditional and social components of a company’s products and business processes; and (2) a ‘consumerism’ component that implies that the preferences and desires of consumer segments are partially responsible for the increasing influence of ethical or social factors (Devinney, Auger et al. 2006). Hence two simple models of decision making are relevant to a general view of CnSR. The first is a simple filtering model that implies that expressed attitudes in a world of full information will lead to significantly less revealed behaviour. In other words, people say more than they do. The second model is more complex and implies that one has to account for a host of intervening factors that may imply that attitudes are not revealed correctly, that purchase intentions are gamed or erroneous, and that actual behaviour is as much or more a function of external factors as it is a function of individual preferences (Devinney, Auger et al. 2006).

Research about the external factors which have an influence on the actual behaviour of consumers who purchase CSR-products is limited. Sen and Bhattacharya (2004) show that there are numerous factors that affect whether a firm’s CSR activities translate into consumer purchases.

(15)

12

Figure 4: CSR Framework (Bhattacharya, Smith et al. 2004)

Certain types of corporate involvement in the social issues arena can also motivate consumers to undergo some form of “behaviour modification” themselves. In their experimental research, consumers’ company evaluations were positively influenced after reviewing CSR information about the company. This positive relationship is even stronger among consumers that perceive the focal company to have a better reputation, perceive a high fit between the company and the cause, and have a personal connection to the cause that is represented by the company’s CSR initiative. Next to this, Sen and Bhattacharya (2004) indicate another factor that influence the consumer behaviour towards CSR-products, namely the sense of attachment or connection consumers feel with companies engaging in CSR activities they care about. The findings from the research show that consumers do indeed identify with select companies when they are strong supporters of the companies’ CSR initiatives (Bhattacharya, Smith et al. 2004). Moreover this research shows that consumers’ attributions and attitudes are much more positive when they view the company as a pioneer in its CSR policies (Bhattacharya, Smith et al. 2004)

(16)

13

Bray et al. (2011) identify consumer characteristics and impeding variables in ethical consumption and the impact on consumer behaviour outcomes. The impeding factors were price sensitivity, personal experience, ethical obligation, lack of information, quality, inertia and cynicism:

Figure 5: Model of impeding factors (Bray et al., 2011)

Although a company’s CSR initiatives alone do not trigger a purchasing decision in most cases, there are several determinants that increase the likelihood of taking CSR into consideration when making purchasing decisions. The qualitative research of Öberseder et al. (2011) shows that evaluation of CSR initiatives is a complex and hierarchically-structured process, where consumers distinguish between core, central and peripheral factors. The complexity of the assessment of all core, central and peripheral factors leads a large number of consumers to ignore CSR as a purchase decision. They also added peer pressure as factor to influence consumer behaviour towards CSR-products.

There are more studies about understanding consumer behavior towards CSR product. For example in Korea Hoon Lee (2010) examines the relationship between consumer awareness of CSR activities and their purchase intentions. This study finds out as CSR activities corporate social contribution and local community contribution affect consumers’ purchase intention while corporate environmental protection and contribution have no effects on consumers’ purchase intention. And this study revealed that consumers’ understanding of CSR activities affects their purchase intentions. Thus, it is worthwhile to explore a broader range of CSR dimensions and activities, and to investigate the relationship between

(17)

14

consumers’ awareness and understanding of CSR activities and their buying behaviour (Lee, Shin 2010).

Most of the researchers who examine the factors that influence the assessment of CSR as a purchase decision use qualitative method (Bray, Johns et al. 2011, Bhattacharya, Smith et al. 2004) Qualitative studies suffer from a limitation that the results cannot be generalized. However, the objective of qualitative research is exploration and conceptualization, rather than generalization (McCracken 1988). So it is interesting to do a quantitative research, where not only the factors are identified in large scale, but also the mutual importance of these factors. The main research question is as following:

What are the main factors and what is the influence of these factors in the purchase decision of CSR travel products?

For understanding and evaluation of CSR initiatives in the travel industry it is important to explain the consumers’ assessment of CSR: what factors influence the assessment of CSR as a purchase decision? Sen and Bhattacharya (2004), Öberseder et al. (2011) and Bray et al. (2011) identify a range of factors that intervene between consumers’ attitudes, behavioral intentions and actual behavior. These factors are further explained below.

Availability of CSR information

Consumers generally have a low level of awareness about what CSR is. But when consumers are made aware of about what CSR is, it does lead to stronger behavioural intentions towards buying products from a CSR company (Pomering, Dolnicar 2009). So customer’s awareness of a company’s CSR is a key prerequisite to their positive reactions to such activities (Bhattacharya, Smith et al. 2004). This makes it important that consumers need information about the CSR behaviour of a company otherwise CSR will not be considered as purchase criteria. Information is a necessity for consumers to consider ethical product features in their consumption decisions. Information consists of two dimensions: level of information and type of information. Level of information describes the extent of knowledge (e.g. no, little, or extensive knowledge) consumers have about a company’s CSR initiatives. The second dimension focuses on whether the CSR information consumers have is perceived as positive or negative (Öberseder, Schlegelmilch et al. 2011). When only equipped with some vague idea of the company’s CSR initiatives, consumers tend to overlook this information and

(18)

15

continue with their normal purchasing behaviour (Bray, Johns et al. 2011).

Consumers should be aware of the company’s CSR behaviour otherwise they will not take CSR into account as purchase criteria, because they simply don’t know. This lead to the following hypothesis:

Reconciliation with CSR initiative

The reconciliation with CSR initiatives has roots in the Social Identity Theory. People tend to classify themselves and others into various social categories, such as organizational membership, religious affiliation, gender and age cohort (Ashforth, Mael 1989, RW.ERROR - Unable to find reference:94)also argue that social identification leads to activities that are congruent with the identity, support for institutions that embody the identity, stereotypical perceptions of self and others that traditionally are associated with group formation and it reinforces the antecedents of identification. So if consumers do have enough CSR-related information about a specific company, they will evaluate whether the respective behaviour can be reconciled with their own personal concern of CSR-related issues (Öberseder, Schlegelmilch et al. 2011). Consumer Company Identification (CCI) plays a role when evaluating a company. CCI is a strong mediator of the relationship between CSR and purchase intention. A company’s character, as revealed by its CSR actions, is not only ‘fundamental and relatively enduring’, but also often more distinctive by virtue of its disparate and idiosyncratic bases (e.g., egalitarian employment policies, sponsorship of social causes, and environmentalism) than by other facets of the company-schema (e.g., manufacturing expertise), particularly among successful competitors. Moreover, identification with an organization engaged in ‘do good’ CSR actions can clearly contribute to consumers’ self-esteem (Bhattacharya, Smith et al. 2004). The more consumers identify themselves with a company, the more positively they assess it. So the more people can identify with the CSR of the company, the more positively they assess it. Taking this into account we assume that the reconciliation of the CSR information with their own personal concern has an impact on the purchase behaviour of CSR products:

H1: When consumers have no or only little information about the company’s CSR behavior, CSR will not be considered as a purchase criteria

H2: When consumers can reconcile the CSR information with their own personal concern of CSR related issues, CSR will be considered as a purchase criteria

(19)

16

Price

Sufficient financial resources are a prerequisite for considering a company’s CSR activities as a purchase criterion. The financial situation of the consumer is highly relevant when purchasing goods (Öberseder, Schlegelmilch et al. 2011). The decision to purchase a CSR product is primarily determined by the consumer's willingness-to-pay (WTP) for CSR. The WTP is a monetary measure of her preference for this product attribute. It depends on two parameters of her utility function: the marginal utility of income and the marginal utility of CSR. The latter is determined by her ‘social preferences’, which refers to her propensity to internalize the effect of her own actions on others’ welfare (Etilé, Teyssier 2012). Price plays a more important role than ethical values in purchase decisions. When consumers purchase an ethical alternative they seemed to experience post-purchase dissonance as soon as they noticed that the price was higher (Bray, Johns et al. 2011).

For holidays different aspects play a role in the purchase decision. In the Netherlands, first consumers find the destination and the facilities in the area important most important for their purchase decision of a holiday (82%). The second aspect is price (80%) and finally a great chance of good weather (75%) that play a role in purchase decision for travel products (Wagteveld, Maassen and Hulsinga, 2010). So we can assume that also price plays an important role:

Image of CSR company

Consumers have a favourable attitude towards companies that engage in CSR. By and large, consumers have a favourable attitude towards companies that engage in CSR. In the experimental research of Sen and Bhattacharya (2004), consumers’ company evaluations were positively influenced after reviewing CSR information about the company. Interestingly, this positive relationship is even stronger among consumers that perceive the focal company to have a better reputation in general (Bhattacharya, Smith et al. 2004). In particular, when an organization is perceived to go beyond people’s expectations with respect to CSR activities

H3: Price of a CSR product or service plays an important role for considering a company’s CSR activities as a purchase decision

(20)

17

and do more than what similar peers or companies in the industry do, they are likely to develop favourable attitudes and purchase intentions toward the company (Lee, Kim et al. 2012). According to the research of Öberseder et al. (2011), the image of a company is an indication of whether or not it employs socially-responsible practices when conducting business. A positive perception of a company’s image evokes the association that the company behaves socially responsible. So we hypothesize that:

Credibility of CSR initiatives

The credibility of CSR initiatives is another factor. Consumers do question why companies

Credibility of CSR initiatives

Consumers do question why companies engage in CSR and, more importantly, are generally wary of the sincerity of a company’s CSR motives (Bhattacharya, Smith et al. 2004). The

consumption of CSR products is associated to additional benefits for consumers with social preferences in terms of utility/well-being only if the consumer is aware that the product has been produced according to CSR principles. This requires that a label indicates the CSR quality of the product. The credibility of the CSR label is an important issue (Etilé, Teyssier 2012).

The credibility is influenced by the fit between a company’s CSR initiatives and its core business. Consumers’ attributions and attitudes are much more positive when the company’s CSR initiatives are perceived to fit well with its overall positioning (Öberseder, Schlegelmilch et al. 2011). The level of scepticism about the company’s motives influences the effect of fit on purchase intention and attitude towards the company. High levels of fit lead to less scepticism, which leads to a more positive attitude towards the company and a higher level of purchase intention. A high fit leads to an easier integration of CSR communication into the existing structures of the consumer. No inconsistencies between expectations and presented information (communication) exist, which probably leads to less critical thinking about a company’s motives (Elving 2013)

Secondly the credibility is influenced by the channel of communication. For example reports that compared the firm’s CSR activities to the competitor’s activities favourably affected consumers’ attitudes and purchase intentions positively. On the other hand, self-promotional reports affected neither attitudes nor purchase intentions significantly (Lee, Kim

H4: A positive perception of a company’s image evokes the association that the company behaves socially responsible and increases the likelihood to consciously opt for a company’s product and incorporate CSR efforts into their purchase decisions

(21)

18 et al. 2012).

Credibility plays a role to opt for a company’s product and incorporate CSR efforts in purchase decisions. This led to the following hypothesis:

Peer pressure

Peer pressure may force consumers to adopt CSR products and services. Social pressure can be a driver of purchase even if the consumer likes less the CSR product than the standard one. (Etilé, Teyssier 2012). Bray et al. (2011) show that guilt was a reoccurring theme throughout their research, but it was not an early part of the decision-making process. Moreover, (DellaVigna, John ) show that social pressure is an important determinant of charitable giving.

So we assume that peer groups play a role in the assessment of CSR as a purchase decision:

Influence of factors

Oberseder et al. (2011) found in their qualitative research that there are three types of factors that influence the assessment of CSR in purchasing decisions: core, central and peripheral. The two core factors that they identify, information and personal concern are perceived by consumers as being of particular importance for the consideration of CSR as a purchase criterion. Information consists of two dimensions: level and type. Level of information concerns the extent of knowledge (e.g., no, little, or extensive knowledge) that the consumer has about a company’s CSR initiatives. The second dimension, type of information, and focuses on whether the CSR information consumers have is perceived as positive or negative (Öberseder, Schlegelmilch et al. 2011). Consumers also evaluate whether company’s CSR activities fit with their personal concerns regarding CSR issues. The overriding central factor is financial – people are constrained in the purchasing choices by their financial means and, without sufficient means, cannot afford to be selective on the basis of ethical attributes. Peripheral factors include the company’s image, the credibility of its CSR initiatives and the influence of peers. Öberseder et al. (2011) identify core, central, as well as peripheral factors

H5: Credibility of CSR initiatives increases the likelihood to consciously opt for a company’s product and incorporate CSR efforts into their purchase decisions

H6: Peer groups can directly influence consumers in their the assessment of CSR as a purchase decision

(22)

19

and the hierarchical relation. For the assessment of CSR as a potential purchasing criterion, it is important to evaluate the presence of core factors and the acceptability of the central factor price. If consumers do not have any information or do not care about CSR initiatives, they do not consider CSR as a purchase criterion. If they do have relevant information, consumers will next evaluate whether they have the financial resources and are willing to spend money on products from socially-responsible companies. We think that there is a distinction in importance of the core, central and peripheral factors in purchase decision of CSR travel products and we hypothesize the following:

Our literature review including the hypotheses leads to the following model:

Our literature review including the hypotheses leads to the following models:

Figure 6: Research Model 1

H7a: Core factors play a more important role than central factors in the purchase decision of CSR travel products

H7b: Central factors play a more important role than peripheral factors in the purchase decision of travel products

(23)

20 Figure 7: Research Model 2

(24)

21

4

Research Design

4.1 Overall research design

This research is a deductive approach, what means a research approach which involves the testing of a theoretical proposition by using a research strategy specifically designed for the purpose of its testing (Lewis, Saunders 2012). This proposed study will involve testing seven hypotheses to measure the effect of CSR on purchase decisions of Dutch consumers in the travel industry. This research will involve an attempt to enhance the understanding of the relationship among these variables through quantitative data. This chapter starts with the explanation of the collected sample. Then the variables and the questionnaires are discussed, followed by the procedure. See the appendix for the complete questionnaire (in Dutch).

4.2 Sample

To conduct the research participants are needed. Participants must meet the following requirement: travelled recently (2014) by a tour operator in travel industry in the Netherlands. For this study we sought to select tourists by recruiting and screening a ‘purposive’ sample (Lewis, Saunders 2012) of informants who were deemed theoretically relevant to the study’s core research questions. Purposive sampling is particularly used to select a sample when collecting qualitative data (Lewis, Saunders 2012) but because we need to select participants who travelled recently purposive sampling is a good way for selecting the sample for this research. Therefore we intentionally selected tourists who all had recently booked holidays with different kind of tour operators, assuring us that they possessed first-hand experience of, and could t.hus tell meaningfully about, the phenomenon under investigation (Lewis, Saunders 2012)

We selected the tour operators of the ANWB (Algemene Nederlandse Wielrijders Bond). The Royal Dutch Touring Club ANWB offers a wide range of services related to roadside assistance and medical and repatriation assistance abroad, legal assistance, travel, information products, insurances, selling travel related products and many other products and services in the areas of recreation, tourism and mobility. Furthermore, the ANWB is active in lobbying in the fields of driving, mobility, travel and recreation. The ANWB owned 8 tour operators in the Netherlands: Fox Vakanties, Pharos Reizen, Travelhome, SNP Natuurreizen, Cruise Travel Netherlands, Cruise Travel Belgium, ANWB Ledenreizen and Pin High Golftravel. We selected the tour operators of the ANWB because of 3 reasons. First the ANWB owns SNP Natuurreizen, a tour operator that leads the way in sustainable tourism in

(25)

22

the Netherlands. Secondly the ANWB has a large database with a variety of travellers. Finally I have worked as a marketer at the ANWB, so it was more easily to get access to the databases of the tour operators. This process enhanced the theoretical relevance of the sample, because these tour operators offer a wide range of holiday categories in the Netherlands. They offer holidays in different destinations for different target groups like families, adventure travel, luxury travel etc. The sample is heterogeneous and will have sufficiently diverse characteristics to provide the maximum variation possible in the data collected (Lewis, Saunders 2012). Although this study makes no claims to cultural or national influences on responsible tourism, all respondents were from the Netherlands and Belgium.

To get access to the databases of the ANWB tour operators, first we made a presentation for the CEO’s of the tour operators to convince them to support this research. There were 4 tour operators who wanted to participate in this research, namely Fox Vakanties, Pin High Golf Travel, SNP Natuurreizen and Cruise Travel Belgium. Travelhome decided not to involve in this study because they recently sent a survey about MVO to their clients and thought it would overwhelm their clients. Pharos Reizen and Cruise Travel Netherlands had other priorities in their businesses due to the peak season. ANWB Ledenreizen did not have easy access to their database to select customers, so they also decided not to participate in this research.

Below the list of the ANWB tour operators including the number of surveys sent to their clients and the number of responses:

Figure 8: Response rate ANWB tour operators

There is a difference in response rate which is probably caused by a variety of ways of transmitting the survey. Fox Vakanties, Pin High Golf Travel and SNP Natuurreizen sent a direct mailing to their clients and Cruise Travel Belgium put the survey in their regular newsletter. From the 4260 respondents that start filling out the questionnaire, 3090 respondents fully completed the questionnaire. To clear the database for making the sample as reliable as possible we removed the following respondents from the sample:

- All respondents with age <18, because it is not allowed in the Netherlands to book a holiday without permission of an adult

Name tour operator Number of sent surveys to clientsNumber of responses of clientsRespons rate

SNP Natuurreizen 1000 108 10,80%

Fox Vakanties 11553 2994 25,92%

Cruise Travel Belgium 5000 101 2,02%

Pin High Golf Travel 5000 1057 21,14%

(26)

23

- All respondents who filled in the questionnaire in less than 3 minutes or more than 30. Less than 3 minutes is not reliable because to fill in properly the questionnaire a respondent needs more time. More than 30 minutes is not reliable because respondents had to read specific information about the CSR initiatives of the tour operator. If they stopped the questionnaire for a while they probably forgot this information.

- All respondents who did not travelled with one of the tour operators in 2014, because we think they were less able to remember the purchase decision making process. - All respondents who did not live in the Netherlands or Belgium, because this survey is

about the Dutch and Belgium travel industry.

The total of the sample after removing these respondents was 2430. Taking all the 2430 respondents together (Mage = 53.90, SDage = 13.60, age-range: 19-90 years) 51.52% were

female and 48.48% were male and 94.24% lived in the Netherlands and 5.76% lived in Belgium.

4.3 Measurement of variables

There are 4 types of variables in this research. To ensure validity we use mainly validated measures from the literature standardization. To establish reliability we use measures with demonstrated reliability or use multiple items.

1. Independent variable

The independent variable of this research is ‘attitude towards CSR companies in travel industry’. We select a sample of travellers who travelled recently with a tour operator of the ANWB. To check the attitude of these travellers towards CSR companies in travel industry we used questions from the research of Creyer and Ross (1997) for the importance of ethical behaviour, like ‘given a choice between two firms, one ethical and the other not especially so, I would always choose to buy from the ethical firm’ and ‘It is important to me that the firms I deal with do not have a reputation for unethical behaviour ‘. Responses to the items were measured on a seven-point Likert scale in which one indicated ‘Strongly disagree’ and seven indicated ‘Strongly agree’. The score for each construct was extracted by averaging the total score in the appropriate items. The internal consistency was examined using the Cronbach’s α = .91.

(27)

24

2. Dependent variable

Dependent variable of this research is ‘purchase decisions for products of CSR companies in travel industry’. All the tour operators have a program for CSR. The research is about how factors probably influence the purchase decision for CSR products and not the sort of CSR product. So value perception is a dependent variable. Creyer and Ross (1997) conducted five questions to examine if consumers would pay more money for a product from a firm that she/he knows to be ethical, they call this ‘the willingness to reward’ (Cronbach’s α = .85).

3. Other variables

There are 6 different kinds of other variables: availability of CSR information, reconciliation with CSR initiatives, price, image of CSR company, credibility of CSR initiatives and peer pressure. These variables strengthen or weaken the relationship between a ‘positive attitude towards CSR companies in travel industry’ and the ‘purchase decisions for products and services of CSR companies in travel industry’. All these factors can be measured with scale items and will be induced as questions in a questionnaire that consumers of CSR companies in travel industry will receive.

Availability of CSR information

When consumers are made aware of what CSR is, it appears that CSR does lead to positive attitudes and stronger behavioural intentions towards buying products from a socially-responsible company (Pomering, Dolnicar 2009, Sen, Bhattacharya et al. 2006). Hence, communicating CSR activities is essential to enhancing CSR awareness. So we have to check in the questionnaire if the consumer is aware of the CSR activities of the company by asking if they know the way the tour operator act social responsible and if they know what charities a tour operator support.

Reconciliation with CSR initiatives

The more consumers identify themselves with a company, the more positively they assess it. So the more people can identify with the CSR of the company, the more positively they assess it (Bhattacharya, Smith et al. 2004). To measure the identification of the consumer with the CSR of the company, we use the 7-point Likert scale of Aaker, Fournier and Brasel (2004). It assesses the degree to which a consumer relates with a brand/company and believes its CSR image fits well with her/his own self-concept. (Cronbach’s α = ranging from .88 to .91).

(28)

25 Price

To measure the influence of price we asked a question to know how much more travellers would like to pay for CSR holidays.

Image of tour operator

To check the image, we asked the respondents what they thought of the tour operator. We used a seven-point Likert scale based on the scale of Mathwick and Rigdon (2004). A high score on this scale indicates a positive image, a low score a bad image. The scale had a high reliability (Cronbach’s α =.88).

Credibility of CSR initiatives

The credibility is influenced by the fit between a company’s CSR initiatives and its core business (Bhattacharya, Smith et al. 2004, Öberseder, Schlegelmilch et al. 2011) and by the channel of communication. (Lee et al., 2012) To assess the fit between a company’s CSR initiatives and its core business a measurement we used the scale of Gürhan-Canli and Maheswaran (2000). The scale is composed of seven-point Likert type statements measure the extent to which some specific information to which a consumer has been exposed is viewed as being true and acceptable. Gürhan-Canli and Maheswaran (2000) reported a Cronbach’s α =0.87 and 0.77.

Peer pressure

We measure the social pressures of people who have similar interest, same age, background or social status by the items from George Moschis (1978). We changed the 5-point Likert-scale to a 7-point Likert Likert-scale ranging from 1 (strongly disagree) to 7 (strongly agree), so it was equal to the other questions in the questionnaire.

4. Control variables

Control variables are age, sex, and country. Age was found to influence individuals’ attitudes towards CSR. Elder consumers were found to have a more positive attitude towards CSR. Sex was not found to be an important factor discriminating attitudes towards CSR. Income and job category were found to be significant in forming consumers’ attitudes towards CSR. (Vassilikopoulou and Siomkos 2005). But on the other hand other authors find no such

(29)

26

correlations, and it is suggested that demographic factors are poor predictors of ethical views, for a variety of background reasons (De Pelsmacker, Driesen et al. 2005, O’Fallon, Butterfield 2005). The control variables hold constant for calculations made about the effect of the’ attitude towards CSR companies in travel industry’ on the ‘purchase decisions for products and services of CSR companies in travel industry’.

4.4 Procedure

In order to measure attitudes towards CSR, a data collection instrument consisting of an exhaustive list of items was developed based on a thorough qualitative research of Öberseder et al (2011), previous conclusions of researches, the measurement scales of previous quantitative researches and we added some questions.

All items used in the questionnaire were derived from English studies. Since all respondents to the survey had Dutch as native language, the original items were translated into Dutch. In order to assure that the content of the items remains unchanged, the translated items were back translated into English by a third person. A small number of differences between the back-translated and the original items were corrected in the final Dutch version of the questionnaire.

Data collection was conducted in the period between 13 December 2014 and 4 January 2015. Consumers of Fox Vakanties, Pin High Golftravel, SNP Natuurreizen and Cruise Travel Belgium received a questionnaire by e-mail. A written questionnaire is chosen because of the large sample. The questionnaire has been sent in the name of the tour operator because of two reasons. First of all we propose that the response rate will be higher, because clients already made a booking at the tour operator and have a relationship with the tour operator. We also sent the questionnaire in the name of the tour operator, because of the tour operator’s privacy statement. They are not allowed to share data of the client with others. For an optimal response, they could participate in a lottery to win a city break.

To perform the statistical analyses, the Statistical software Package for Social Sciences (SPSS) was used. First, we recoded the reverse coded items (questions 6.2, 7.2, 7.3, 7.4, 7.5, 14.1, 14.2, 14.3) and the data was checked for abnormalities using descriptive statistics, skewness, and kurtosis and normality tests. (Shapiro-Wilk test, the Kolmogorov test and qq-plot). The normality check showed that all the variables were normally distributed. We removed the outliners from question 7 about price. The question was how much more % would you like to pay for a holiday if you now that the company is Corporate Social Responsible. We removed all the answers of more than 50% because we think that this is not

(30)

27

realistic and probably consumers noted in Euro instead of %.

After checking the normality of the variables, scale reliabilities were tested using Cronbach’s alpha. All the questions had a Cronbach’s α > 0.7 except question 6 about peer pressure where the Cronbach’s α = 0.277. Probably this is due to use of 3 questions instead of the 4 questions for peer pressure from George Moschis (1978) because we thought this question was after translation too difficult to understand for consumers. To improve the Cronbach’s α for peer pressure we removed question 6.3. Still the Cronbach’s α is <0.7 (0.697) but is close to 0.7.

As all data is cleaned and checked, correlation analysis was conducted to get a first impression of the existing relations between variables. Afterwards, regression analysis and stepwise regression was used to test the proposed hypotheses. The first step was to measure the influence between the independent variable and the dependent variable. The second step was to analyse all the variables with the dependent variable and what variable is most strong in comparison to other variables. The third step was to analyse the hierarchically-structured process of the variables.

(31)

28

5

Results

Below, the direct relation between the independent and dependent variable, (figure 9) will be discussed. Subsequently the results from the regression analyses of all variables will be outlined (figure 10). We finish with hierarchically-structured process of the variables of purchase decisions of CSR products in the travel industry (figure 11).

5.1 Correlation analysis

Correlation independent and dependent variable

Figure 8 presents the descriptive statistics and correlations for the correlation between attitude towards CSR products (independent variable) and the purchase decision for CSR products in the travel industry (dependent variable). The correlation is significant (p < 0.05) and there is a strong positive correlation between the two variables (β = 0.556). The contribution to the explained variance in the dependent variable is 30.9% (R² =0.309). We also calculated variance inflation factors (VIF) to assess multicollinearity. The VIF within the model was 1.00, which is well below the rule-of-thumb cut-off 10. Also for the other models (figure 10 and 11) the VIF was correct.

Figure 9: Relation dependent and independent variable

Correlation all variables and dependent variable

Figure 9 presents descriptive statistics and correlations for all variables where purchase decision for CSR products in travel industry is the dependent variable. The contribution to the explained variance in the dependent variable is 42.70% (R² =0,427).

(32)

29

Figure 10: Relation all variables and dependent variable

A first observation derived from the table is that all the variables except peer pressure are significantly correlated with purchase decisions for products of CSR companies in travel industry (p < 0.05). Hypothesis 1, which posited that when consumers had have no or only little information about the company’s CSR behavior, CSR will not be considered as a purchase criteria, was supported (β = 0.097, p < 0.05). The proposed positive effect of reconciliation the CSR information with their own personal concern of CSR related issues on purchase decisions for CSR products in travel industry (Hypothesis 2) was supported (β = 0.170, p < 0.05). Hypothesis 3 predicted that the price of a CSR product or service must be equal to price of non-CSR product for considering a company’s CSR activities as a purchase decision. Results from the regression analysis showed that there is a relationship between price and purchase decision. But because we asked the question about how much more you would like to pay for it, it also shows that consumers are willing to pay more. On average, consumers are willing to pay 9.37% more for a holiday if they booked it at a CSR company (M=9.37, Sd=10.40). If we remove the outliers (>50%), consumers are willing to pay 9.92%

more (figure 11). Of all respondents, 14.07% would not pay extra for a CSR product (holidays). But still a great number of consumers would not to pay extra. Price of a CSR product or service plays an important role for considering a company’s CSR activities as a purchase decision. So the hypothesis is supported. (β = 0.233, p < 0.05).

(33)

30

Figure 11: How much more people willing to pay for a CSR product in travel industry in %

Hypotheses H5 proposed an influence of the credibility of CSR initiatives and the purchase decision of CSR products in the travel industry. Results showed that credibility of CSR products increases the purchase decision (β = 0.067, p < 0.05). Peer pressure is not significantly correlated with purchase decisions (p > 0.05). We might assume that peer pressure for purchase decisions for CSR products in the travel industry is not an important factor. This means that hypothesis 6 is not supported.

Secondly, there is a negative correlation between the variables of the image of the tour operator and the purchase decision for CSR products in the travel industry (β = -0.088, p < 0.05). So hypothesis 4 is not supported.

The third observation is that the independent variable attitude towards CSR products is most strongly correlated (positive) with the dependent variable of purchase decisions in CSR products in the travel industry (β = 0.361, p < 0.05).

Finally, despite the correlations between most of the variables and the purchase decision for CSR products in the travel industry, the influence on purchase decisions of these factors is very limited. Except the most strongly correlated variable, attitude towards CSR products, plays an important role (β = 0.361)

(34)

31

5.2 The hierarchically-structured process of the variables

The evaluation of CSR initiatives is a complex and hierarchically-structured process, where consumers distinguish between core, central, and peripheral factors (Öberseder, Schlegelmilch et al. 2011). To test the hierarchically-structured process we used a stepwise regression, which involves starting with no variables in the model, testing the addition of each variable using a chosen model comparison criterion, adding the variable (if any) that improves the model the most, and repeating this process until none improves the model. The results are in figure 12.

Figure 12: Hierarchy of variables for purchase decisions for CSR products

We can conclude from this table that the central factor (prices) have more influence (7%) on the purchase decision than the central factors (availability of information 3.3% and

reconciliation with CSR initiative 0.7%). Moreover, the central factors, availability of information (β = 0.097, p < 0.05) and reconciliation with CSR initiatives (β = 0.170, p < 0.05), are less strong than the core factor price (β = 0.233, p < 0.05). This means that hypothesis 7a is not supported.

The core factor price has more influence (7%) than the peripheral factors (image of tour operator 0.5% and credibility of CSR initiatives 0.3%. Peer pressure will not improve the model. The correlation analysis confirms this. The core factor price (β = 0.233, p < 0.05) is stronger than the peripheral factors peer pressure (>0.05), image of tour operator (β = -0.088,

(35)

32

p < 0.05) and credibility of CSR initiatives (β = 0.067, p < 0.05). This means that hypothesis 7b is supported.

(36)

33

6

Discussion

Below, the most evident findings are discussed, together with their implications with respect to the literature and management practice. Furthermore, the study’s limitations are outlined.

6.1 Theoretical and practical implications

The current study was able to identify factors that have an influence on the actual consumer behaviour when purchasing CSR products, which concurs with more comprehensive studies (Bray, Johns et al. 2011, Bhattacharya, Smith et al. 2004). Recent studies attempted to extend this relationship by for example looking for the relationship between consumer awareness of CSR activities and their purchase intentions (Lee, Shin 2010). Obersëder et al (2011) identify a range of factors that intervene between consumers’ attitudes, behavioral intentions, and actual behavior.

This study contributed to recent research by examining the factors that have an influence on purchase decisions of CSR products. Whereas the majority of studies focussed on qualitative methods, the current study took an integrated view by utilizing a quantitative method. Not only have factors been identified at a large scale, also their mutual importance has been assessed. Additionally, this research focuses on the travel industry, a domain where research into consumer decision making is mainly absent (Wijk, Persoon 2006, Rahman 2011).

Öberseder et al. (2011) show that the evaluation of CSR initiatives is a complex and hierarchically-structured process in which consumers distinguish between core, central, and peripheral factors. We will discuss these factors in this sequence.

The core factors: availability of information and the reconciliation of consumers of CSR initiatives

Customer’s awareness of a company’s CSR is a key prerequisite to their positive reactions to purchase decisions (Bhattacharya, Smith et al. 2004). Consumers need information about the CSR behaviour of a company otherwise CSR will not be considered as purchase criteria. If consumers do have enough CSR-related information about a specific company, they will evaluate whether the respective behaviour can be reconciled with their own personal concern of CSR-related issues (Öberseder, Schlegelmilch et al. 2011). This study’s regression analysis shows firstly that the effect of these core factors on purchase decisions of CSR products in the travel industry is positive and secondly that this influence is relatively weak.

(37)

34

The central factor: price

We assumed that the core factor price of CSR products and services is important for purchase decisions in the travel industry. The study of Bray et al. (2011) showed that if consumers purchase an ethical alternative they seemed to experience post-purchase dissonance as soon as they noticed that the price was higher. Our analysis for price did not confirm this statement. Respondents were willing to pay more on average 9.37% (M=9.37, Sd=10.40). An

explanation of might be found in the way we asked the respondents about this factor. Secondly, there was an overall positive attitude to CSR products in the sample (M=4.97, Sd=1.28) and this might have a positive influence on the willingness-to-pay (WTP) for CSR

products. Another possible explanation can be the marginal utility of income of the respondents (Etilé, Teyssier 2012). This was not measured in the current survey.

The peripheral factors: peer pressure, image of tour operator, credibility of CSR initiatives and

The analysis of the peripheral factors showed different results. The factor ‘peer pressure’ was not significant correlated with purchase decisions of CSR products in the travel industry. Besides this, the results from the factor analysis were not reliable enough and were therefore inconclusive. Probably, social pressure is a more important determinant in charitable giving (DellaVigna, John 2012) than in products for personal use.

The factor ‘image of tour operator’ had a negative correlation with purchase decisions for CSR products in the travel industry. When consumers review the company as having a positive image, they might not take CSR into account when booking a holiday. Other factors might play a more important role. Another explanation might be that consumers who are interested in CSR deduce CSR associations from an overall image.

Credibility of the CSR initiatives is influenced by the fit between a company’s CSR initiatives (Bhattacharya, Smith et al. 2004, Öberseder, Schlegelmilch et al. 2011) and its core business and by the channel of communication (Elving 2013). We examined only the fit between the CSR initiatives and the core business in the questionnaire and found a positive relation between the fit of the company’s CSR initiatives and core business and the purchase decision for CSR products in the travel industry.

Referenties

GERELATEERDE DOCUMENTEN

In general it can be concluded that for an unstable flame the thermal energy released from chemical reactions is fed in to the acoustic fluctuations in the burner through a

The TB consist of the following firm types: listed companies, family firms, cooperatives, a remaining group of public limited companies and private limited

 CSR reporting experience: Previous research (ACCA, 2004) indicates and this research shows that there is a relation between the experience of a company regarding CSR reporting and

Lastly, this study contributes to the corporate governance and agency theory literature by exploring the moderating effect of a CSR committee on the

This hypothesis examines the relationship between the consumer’s general perceived risk (2a), financial risk (2b), functional risk (2c) and information risk (2d) and

The participants were first introduced with a brief introduction, which mentioned a Master thesis assignment as the reason for conducting the survey. Furthermore,

by examining the possible moderating role of a country’s legal origin on the relation between CSR performance and corporate risk, where it distinguishes the

However, when important stakeholders are not aware of the companies’ actions of doing good, it may not reap the full potential benefits (Hawn &amp; Ioannou, 2016). For